HCL Technologies Q2 FY26 Concall Decoded: “AI ne sambhala, software ne thoda jhuka”
Opening Hook While everyone’s busy asking ChatGPT for stock tips, HCLTech quietly printed $100 million in Advanced AI revenue — and called it just 3% of total sales. The irony? It’s probably the most human-sounding quarter they’ve had in a while. Margins fattened, bookings exploded, and the CFO finally stopped blaming the rupee. But the Software segment? Still acting like it’s allergic to growth. Stick around — things get spicy when AI meets accounting.
At a Glance
Revenue up 4.6% YoY: CFO swears it’s “broad-based,” not “spreadsheet-based.”
EBIT margin at 17.5%: The recovery plan finally left the PowerPoint.
Bookings hit $2.6B: And for once, no “mega deal” excuses needed.
Net profit $486M: Flat-ish, but hey, that’s 13.3% of something big.
AI revenue $100M: Officially entered the “we’re also an AI company” club.
Management’s Key Commentary
CVK (CEO): “This was a strong and energizing quarter… strategy coming to life.” (Translation: For once, PowerPoint met reality 😏)
CVK: “We hit $100 million in Advanced AI revenue — about 3% of total.” (Translation: AI’s still a toddler, but we’ve started counting school fees.)
CVK: “AI Force platform deployed in 47 accounts, targeting 100 top clients.” (Translation: Internally, everyone’s forced to say ‘AI Force’ five times a day.)
CVK: “We’re developing IPs that make intelligence enterprise-ready.” (Translation: We’ll make OpenAI look corporate-friendly — for a fee.)
CFO (Shiv Walia): “EBIT at 17.5%, up 116 bps QoQ.” (Translation: Finally, Excel smiled back.)
CVK: “We’re proactively transforming services, even if it disrupts revenue.” (Translation: Cannibalizing old business before someone else does.)
CVK: “Visa reliance is now down to a few hundred.” (Translation: H-1B hikes won’t ruin our Diwali bonus this time.)
